Satellite imagery provider DigitalGlobe (DGI), which went public in mid-May, was the fifth U.S. IPO in 2009, and is part of a larger and very exciting trend in the IPO market.

With Morgan Stanley (MS) and JPMorgan (JPM) as lead managers on the deal, the company raised $279 million by offering 14.7 million shares at $19, which was above the proposed $16 to $18 range.

DigitalGlobe is a leading global provider of high-resolution satellite imagery for defense and commercial applications, such as Google Maps. According to the company, "With advanced collection sources and a comprehensive ImageLibrary containing more than 730 million square kilometers of imagery and imagery products, DigitalGlobe offers a range of online and offline products and services designed to enable clients to access and integrate imagery seamlessly into business operations and applications."

That's a nice little niche, but if you're familiar with me, you know that I like to trade best-of-breed IPOs with in-demand products or services, using technical analysis as my guide. (If you're not familiar with my IPO trading strategy, I suggest you take a look.)

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An IPO You'll Be Thankful For This Holiday Season

Lately, I've been talking a lot about the hot IPO market, and today I want to tell you about the next great IPO trade.

Talecris Biotherapeutics (TLCR), a biopharmaceutical company that specializes in plasma-derived protein therapies, went public on Sept. 30, raising a whopping $950 million.

In early November, the IPO received a slew of upgrades:

*Barclays Capital initiated "equal weight"
*Citigroup initiated a "buy"
*Wells Fargo initiated "outperform"
*JPMorgan initiated "overweight"
*Since it began trading, the stock's chart has formed a bullish cup-and-handle pattern.

The pattern includes an elongated U-shape followed by a short period of consolidation of one to two weeks in duration, which tends to be downtrending.

The pattern is similar in appearance to a coffee cup with a right-side handle, and indicates the potential for an uptrend.

If the price ascends outside of the trendlines, then it has the potential for breakout. If the price ascends beyond the upper right side of the cup, then the pattern is confirmed, particularly if it is accompanied by a sharp increase in volume.

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